RC Transfer: Those buying or selling a used vehicle should understand the rules regarding RC transfer..

Buying or selling a used vehicle involves more than just handing over the keys in exchange for money; it is essential to transfer the Registration Certificate (RC) to the new buyer's name. According to RTO and Supreme Court regulations, the previous owner remains liable for all legal and financial liabilities if the RC is not transferred, which can lead to serious consequences. Both the buyer and the seller share responsibility for the RC transfer process; the seller initiates the procedure, while the buyer carries it forward.

If the buyer fails to complete the transfer process, the previous owner should contact the RTO to clarify the situation and must carefully preserve all sale-purchase documents and related paperwork. This is crucial because, as per Supreme Court rulings, the original owner is held accountable for any legal or financial liabilities until the transfer process is fully completed.

Who is liable in the event of an accident or crime?
Under Section 2(30) of the Motor Vehicles Act, 1988, the person whose name is recorded in the RTO records is considered the vehicle's true legal owner. Various Supreme Court judgments (such as *Surendra Kumar Bhilwale vs. New India Assurance*) have clarified that even after the vehicle is sold and the keys handed over, the previous owner remains liable if the vehicle is involved in a road accident or criminal activity until the RC is transferred. The previous owner may also be required to pay any claims or compensation.

If the buyer violates traffic rules, all e-challans and penalty notices will be sent to the previous owner's address.

If the vehicle is involved in an accident while the RC is still in the previous owner's name, insurance companies may reject the claim. The new buyer cannot secure an insurance claim for the vehicle without a valid RC transfer. 

Timeframe for RC Transfer
According to RTO regulations, an application for RC transfer must be submitted to the RTO within 30 days if the vehicle is sold within the same state. However, if the buyer is from a different state, this period extends to 45 days. At the time of sale, the seller must sign Form 29 (Notice of Sale) and the buyer must sign Form 30 (Application for Transfer of Ownership) for submission to the RTO. Additionally, the old RC, valid insurance, PUC certificate, and the buyer's ID proof are required.

New Draft Rule for Second-Hand Dealers
The Ministry of Road Transport and Highways has proposed stricter regulations. Under this proposal, if an individual sells their used vehicle to an authorized second-hand car dealer and the vehicle is not sold to a new buyer within six months (180 days), the vehicle's ownership will automatically be legally registered in the dealer's name. This will provide significant relief to former owners, sparing them from unnecessary visits to the RTO and the mental stress associated with traffic challans.

Passengers and vehicle owners can track the live status of their RC transfer at any time via the 'Know Your Application Status' feature on the Transport Service Portal.

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